Featured image credit: Felipe Oliveira/EC Bahia
The landscape of Brazilian football is undergoing a significant transformation following the approval of the SAF (Sociedade Anônima do Futebol) legislation in August 2021.
Like in most European countries, this new legal framework allows football clubs to convert into companies, opening the door for acquisitions by both Brazilian and foreign investors, including individuals and investment funds. The SAF model represents a landmark shift, offering unprecedented opportunities for investors to enter a huge market long known for its passion, talent production, and global appeal.
However, seizing these opportunities requires more than just capital. Strategic, long-term investments in infrastructure – modern stadiums, advanced training facilities, and comprehensive club amenities – are essential for driving sustainable growth and ensuring a competitive edge in this evolving landscape.
Currently, eight out of the 20 clubs in the Brazilian Serie A have converted into SAFs and four of those were invested in by foreign groups (including Red Bull and City Football Group). There is another handful of clubs in lower divisions (Serie B, C and D) that recently became SAFs.
However, there is still a huge potential in other clubs with different profiles: from nationwide powerhouses to local clubs with a strong community fan base.
“Brazilian football clubs offer a rare combination of assets to investors: large, passionate fan bases and a continuous flow of emerging talent,” says Junior Gottardi, special advisor for football assets at Arena Events+Venues.
Brazilian Serie A clubs acquired by foreign investors after the SAF law:
Training centres: the heart of talent development
When acquiring a football club in Brazil, it’s crucial to look beyond the immediate allure of on-field success. A sustainable, profitable future depends on strategic investments in infrastructure that align with the club’s long-term goals.
Brazil’s reputation as a football talent factory is well-earned, but the difference between a club that merely participates and one that dominates lies in the quality of its training infrastructure. A top-tier training centre is essential for developing players to their full potential, ultimately benefiting the club both on the pitch and in the transfer market.
A state-of-the-art training facility ensures a steady flow of talent, strengthening the first team or generating profits through player sales. The financial stability of a club can be heavily supported by this pipeline, making the training centre a critical investment.
Moreover, a top-class facility signals to the football world that the club is serious about competing at the highest level, attracting better coaches, players, and commercial partners.
Modern stadiums: catalysts for revenue growth
In Brazil, the 2014 FIFA World Cup set new standards, and around 15 stadiums were either built or extensively renovated recently, providing a blueprint for modern infrastructure in the country. Clubs that embraced this wave of modernisation are enjoying significant benefits, while those still operating in outdated venues are increasingly left behind in both financial and performance terms. In the current Brazilian Serie A season, 13 out of 20 clubs play in stadiums built or renovated after 2010.
A wave of new stadiums opened in Brazil in 2014 and had significant impact in attendance and matchday revenue for the clubs
Investing in a modern stadium turns it into a multi-functional facility capable of hosting diverse events – concerts, corporate gatherings, and more. This diversification is particularly important in Brazil, where matchday income in general represents a small portion of a club’s revenues, thus there is a dormant potential to be unlocked.
A stadium that attracts events throughout the year ensures a steady revenue stream, independent of the club’s on-field performance. Moreover, integrating retail spaces, dining options, and entertainment zones transforms the stadium into a community hub, boosting direct and indirect revenues, improving the relationship with the surrounding community and the club’s overall brand value.
The financial case for infrastructure investment
The financial success of any football club acquisition is closely tied to its infrastructure.
Modern stadiums are engagement platforms for fans and sponsors. Also, they open up numerous revenue streams, such as sponsorship, premium seating, and hospitality packages, all of which can significantly improve the club’s financial outlook.
Additionally, clubs with robust infrastructure are far more attractive to sponsors and commercial partners. In a competitive market, brands prefer to associate with modern, forward-thinking clubs offering world-class facilities.
By investing in infrastructure, clubs are not just enhancing their capabilities; they are also increasing their marketability and brand equity.
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